What is the Difference Between a Will and an Estate Plan?

Your last will and testament is one document regarding your death, whereas an estate plan is a collection of documents regarding your death or incapacity. One of the documents included in an estate plan is a last will and testament.

An estate plan is a way for you to plan for your own death or incapacity. Thus, your estate plan includes all documents and beneficiary designations relating to your death or incapacity. One of those documents is your last will and testament, which can direct what happens to your assets at death.

However, your estate plan very likely should be more than just a will. For example, your estate plan should almost certainly include a designation of health care surrogate, a document that determines who makes medical decisions for you if you are incapacitated. You should probably also have a living will, which records your wishes for medical treatment in case you are incapacitated. Estate plans should also include beneficiary designations. For example, you can usually name a person or entity (such as a living trust) to be the beneficiary a retirement account. Finally, estate plans often include joint ownership of assets, like real estate owned jointly or a shared bank account.